Hot on the heels of the 'Average price of new vehicles tops $47K; payments cross record $700/month' thread from the other day I saw this pop up:
Holy heck at spending $1000 a month on a car payment when you only pull in $2,500.
Car Repos Are Exploding. That’s a Bad Omen.
A surge in repossessed autos reflects broader economic problems. The question: How might a bursting of an auto bubble affect the broader U.S. economy?
www.barrons.com
he says he has never seen so many people making $2,500 a month owing $1,000 a month in car payments. That's about double the maximum portion of income many financial advisors recommend allocating toward a car payment. "The idea that the economy is strong? Anyone who is actually doing business sees things are not strong," says Lopez. "We had a housing bubble in 2008, and now we have an auto bubble."
Holy heck at spending $1000 a month on a car payment when you only pull in $2,500.